Navy Secretary John Phelan was removed from his position following months of friction with senior Pentagon leaders, according to multiple sources familiar with the situation.
Officials said both War Secretary Pete Hegseth and Deputy Defense Secretary Stephen Feinberg had growing concerns about Phelan’s leadership, with tensions building over time. One major flashpoint reportedly occurred in October 2025, when Hegseth dismissed Phelan’s chief of staff, John Harrison.
Some of the dissatisfaction stemmed from concerns about how Phelan managed key shipbuilding programs, a source confirmed.
In a statement, Donald Trump praised Phelan as a longtime friend and successful businessman, crediting him with helping rebuild what he described as a weakened Navy. Trump said he would welcome Phelan back into his administration in the future and suggested the former secretary chose to step down—an account that differs from what other officials have indicated.
A senior administration official said Trump and Hegseth agreed that new leadership at the Navy was necessary. Hegseth reportedly informed Phelan of the decision before the move was publicly announced by Pentagon spokesperson Sean Parnell.
The leadership change comes at a critical time for the Navy, as U.S. forces face rising tensions linked to a blockade in the Strait of Hormuz, where Iranian threats and attacks have disrupted a key global oil route. It also coincides with efforts by Trump to place the Navy on a more urgent footing to expand the country’s lagging shipbuilding capacity.